New Year’s Business tax resolution often involve improving our health or personal habits, but why not include keeping on top of your business tax obligations for your business in 2023? Here are five tax resolutions to help you stay on track:

5 Must Keep Business Tax Resolution you need this year!

Determine If You’re In Business

If you are earning income from a hobby, you may already be considered in business for tax purposes. To determine if you are in business, identify all relevant activities you are conducting and ask yourself the following questions:

Do you intend to be in business?

Do you intend and have a prospect of making a profit from your activities? Is the size or scale of your activity enough to make a profit? Are the activities repeated and continuous? Are your activities planned, organised, and carried out in a business-like manner? The more of these questions you answer yes to, the more likely it is that your activities are considered a business.

Keep Business Details and Registrations Up to Date

A definite Business tax resolution

If you’re a director of an Australian company, apply for a director ID. Keep your Australian Business Number (ABN) details up to date, as emergency services and government agencies use this information to support businesses during disasters. Additionally, if you expect to earn over $75,000 this financial year, you must register for Goods and Services Tax (GST).

Keep Accurate and Complete Records

Good record-keeping helps you manage your business and its cash flow. Keep track of all income and expenses, including invoices, receipts, and bank statements. This will make it easier to complete your tax return and claim all relevant deductions.

Determine If Personal Services Income (PSI) Rules Apply to You

A definite Business tax resolution

Click here for Business Personal Services income

If you earn income mainly from your skills or efforts as an individual, you may be subject to the PSI rules. These rules affect how you report your income and the deductions you can claim. If your accountant told you to set up a company to invoice one client, you may be governed by these rules.

Take Care of You and Your Business

Small businesses have faced many challenges in the past few years, so it’s crucial to be prepared. Consult with your advisers, take their advice seriously, and look into grants and programs that can assist your endeavours.

By making these tax resolutions a priority, you can ensure your business stays compliant and financially healthy.

We wish you all the best and hope you’re on track to thrive in 2023. When the fireworks have faded, know that we're always available to support businesses just like yours.